Completed in February 2014, the facility is located close to the country’s national highway in Opole, in proximity to German population centers, the snow-covered regions of Southern Germany and Austria and the large agricultural areas of Eastern Europe.

The property is leased to Polaris Industries, a company founded in 1955 that designs, manufactures and markets recreational vehicles. It is in fact the largest manufacturer of snowmobiles and the second largest maker of all-terrain vehicles in the world. Furthermore, as a publicly traded company with an equity market capitalization of nearly $10 billion (€8 billion) and a conservative balance sheet, Polaris has generated strong revenue and earnings growth in recent years.

The new building in Opole will serve as Polaris’ primary European assembly and distribution center. The company has made significant investments into the project, which is expected to significantly reduce its manufacturing and transportation costs. The net lease will be for an initial 15-year term and include CPI-based rent growth.

“This investment for W. P. Carey’s owned real estate portfolio follows recent acquisitions by our managed REITs in Poland—a country where we have been able to source high-quality assets with attractive yields. The facility is critical to Polaris’ European operations and will support a well-established and growing business line on a long-term net lease,” Jeffrey Lefleur, managing director of W. P. Carey, says.